Sportech Falls Short of Market Expectations
Sportech plc (SPO.L) on Jan. 7 issued a pre-close statement for its financial year ended Dec. 31, 2003. The company said trading results for its sports betting operation, Littlewoods Bet Direct, will not meet its expectations for the year, even though it has shown improved margins and Internet and telephone betting growth. Sportech blames the low results on the high costs of developing new interactive television distribution channels as well as a string of poor horse racing results. On the other hand, the company's soft gaming operation, which accounts for most its profits and includes football pools, scratch cards, lottery and instant win games and online casino games, is expected to meet its expectations.
Virtgame Closes Private Equity Funding
Virtgame Corp. (VGTI), which provides server-based networked gaming software solutions to the gaming and lottery industries, has closed on a new round of private equity funding worth $1.7 million before deducting the agent's commissions and expenses. The offering includes Series B convertible preferred stock with a conversion price of $0.70 per share and a 6 percent dividend rate. Placed by McMahan Securities Co. L.P., the offering also includes a 25 percent warrant coverage at an exercise price of $0.70 per share.
Youbet.com Retires Notes
U.S. wagering company and provider of horse racing content Youbet.com, Inc. (UBET) has retired a $2 million aggregate principal amount of notes payable. The notes which were privately placed in February 2003 were not due until February 2005, and the early repayment will save the company $200,000 in cash interest expenses that would have been payable in 2004. Youbet will, however, write off the unamoratized net discount, which will result in a fourth-quarter, one-time interest expense charge of $290,000.
High Profits for Hill
William Hill plc (WHM.L) has issued a trading update for the year ended Dec. 30, 2003, claiming that its profits are "towards the upper end of the range of analysts' forecasts." The company says that all three of its divisions has delivered high levels of growth in profitability and gross win. William Hill will announce its preliminary results for the year on March 4. Reuters reports that analysts expect the company to report a pre-tax profit of between £160 and £174 million for the year, which is a significant rise from last year's £81.5 million.
On Jan. 8, William Hill's stock value rose to 450p per share, valuing the company at £1.9 billion. The company, whose shares were listed at 225p per share in June 2002, has doubled its stock price in the last 18 months. The success might be attributed to its new betting terminals and its new virtual greyhound racing and online poker products.
NDS Upcoming Conference Call
Digital pay-TV solutions provider NDS Group plc (NNDS) will release its earnings report for the second quarter of 2004 and hold its conference call on Jan. 27. Interested parties should visit the company's corporate Web site for information.